Red Cat (NASDAQ:RCAT) Stock Price Up 14.2% – Should You Buy?

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) rose 14.2% on Friday . The stock traded as high as $9.83 and last traded at $9.49. Approximately 7,276,086 shares traded hands during trading, a decline of 32% from the average daily volume of 10,712,833 shares. The stock had previously closed at $8.31.

Red Cat Trading Up 7.1 %

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.60 and a current ratio of 1.43. The firm has a market capitalization of $713.26 million, a price-to-earnings ratio of -16.52 and a beta of 1.32. The company has a 50 day moving average price of $9.70 and a two-hundred day moving average price of $5.17.

Red Cat (NASDAQ:RCAT) last posted its quarterly earnings data on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same period last year, the company earned ($0.11) earnings per share. On average, research analysts forecast that Red Cat Holdings, Inc. will post -0.5 EPS for the current year.

Insider Activity at Red Cat

In other Red Cat news, insider George Michael Matus sold 112,686 shares of the firm’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $9.20, for a total value of $1,036,711.20. Following the completion of the sale, the insider now directly owns 973,103 shares of the company’s stock, valued at $8,952,547.60. This trade represents a 10.38 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the firm’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total value of $2,726,813.12. Following the completion of the sale, the director now directly owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This trade represents a 32.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,930,441 shares of company stock valued at $21,099,751. 21.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Red Cat

A number of hedge funds have recently modified their holdings of the business. Sanctuary Advisors LLC purchased a new position in shares of Red Cat during the 3rd quarter worth $25,000. Regency Capital Management Inc. DE purchased a new position in shares of Red Cat during the 4th quarter worth $130,000. Myecfo LLC purchased a new position in Red Cat during the 4th quarter valued at about $193,000. Sheets Smith Wealth Management purchased a new position in Red Cat during the 3rd quarter valued at about $51,000. Finally, Kieckhefer Group LLC purchased a new position in Red Cat during the 4th quarter valued at about $296,000. 37.97% of the stock is currently owned by hedge funds and other institutional investors.

Red Cat Company Profile

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.